Senegal

Introduction

VAT (‘taxe sur la valeur ajoutée [TVA]) is one of the most harmonised areas of taxation within the West African Economic and Monetary Union (UEMOA). UEMOA regulations provide that the VAT rate must be unique and be between 15% and 20%.

Senegalese VAT legislation is contained in the General Tax Code from Article 283 to Article 310. VAT was introduced in 1980.

Rates and scope

Rates The standard rate of VAT is 18%.

Scope

VAT is charged on the supply of goods and provision of services in Senegal in the framework of an economic activity, including where the state and public entities carry out a commercial activity.

A certain number of operations are exempted. The main exemptions are health care, agricultural and fishing activities, education, banking (specific taxation), insurance and reinsurance (specific taxation), and international transport companies (export).

VAT registration

Compulsory registration

Companies that carry out economic activities must be registered. They must have a tax identification number, which is valid for all taxation purposes.

Voluntary registration

Companies specialising in fishing or agricultural activities are free to register for VAT.

Group and branch registration

Companies of a group are registered individually. A branch is considered as a commercial company and must thus be registered with the tax administration.

Nonresidents

When services are subject to VAT, the foreign provider must designate a local fiscal representative for the payment of VAT. If not, the Senegalese debtor has to pay the VAT on behalf of the foreign provider.

No bank account is required in Senegal.

Application for registration

An application for VAT registration must be submitted when the company is incorporated.

Deregistration

Deregistration is possible if the company has closed permanently. In such case, it has to inform the tax administration of its permanent closure.

Output tax

Advertising and prices

There are no specific rules relating to how VAT must be quoted in advertisements and prices. However, the amount of VAT must be indicated individually on an invoice.

Calculation of output tax

Taxable income includes the value of the goods or services. For importation, it is the customs valuation (CIF).

The following items are not included in the taxable income:

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stamp duties;

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disbursement under-provision; and

•

rebates or discounts.

Exemptions and zero-rating

Exempt supplies

Supplies are exempt (without credit) when they are related to:

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health care;

•

education;

•

banking, insurance and reinsurance

(specific taxation applies);

•

international transport companies;

•

fishing activities;

•

agricultural activities; and

•

exports.

Zero-rated supplies

No supplies are zero-rated, but economic operators who are exempted because of export activities may deduct input VAT and obtain a reimbursement of the corresponding credit, subject to certain conditions.

Input tax

Input tax allowed

VAT, applied on goods and services acquired for the need of business, is deductible.